While retail rice prices remain higher than last year ahead of Chuseok, a slightly weak downward trend is expected to continue through September due to factors such as existing inventory levels.

According to the Korea Agro-Fisheries & Food Trade Corporation (aT) today (the 24th), the retail price of a 20-kg bag of rice stood at 61,396 won as of the 21st, up 2.85% from the same period last year.

Compared to the previous month, it fell by 0.02%.

The Ministry of Agriculture, Food and Rural Affairs projected that rice prices will remain slightly weak through September, taking into account rice inventory levels that are higher than last year.

This is interpreted as the result of the government expanding supply to the market to stabilize supply and demand, such as by lending government-held rice grains after the strong rice prices persisted previously.

The Korea Rural Economic Institute (KREI) also analyzed that local rice prices in July fell from the previous month as rice sales decreased amidst improving rice supply conditions.

It also projected that rice prices in the third quarter will show a slightly weak trend compared to the second quarter due to the harvest shipments of early-maturing rice varieties from the 2026 crop.

However, newly harvested rice used for Chuseok ancestral tables is pointed out as a variable, as production could decrease this year due to reduced cultivation areas.

An official from the Korea Rural Economic Institute stated, "We expect the cultivation area to shrink compared to last year, leading to a decrease in production," adding, "Since purchase prices for early-maturing varieties are not expected to be low, shipping prices are likely to be high."

Harvesting of this year's new rice crop will begin starting with some early-maturing varieties near the end of this month.

Actual prices are expected to be determined not only by production volume and cultivation area, but also by crop conditions during the harvest season and supply-demand dynamics.

(File Photo: Yonhap News)